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Motilal Oswal Report
The Finance Minister Nirmala Sitharaman in its press conference yesterday announced relief measures for the micro finance institutions.
The government announced credit guarantee scheme amounting to Rs 75 billion for incremental disbursements with maximum borrower indebtedness of up to Rs 1,25 lakh.
The scheme would provide relief to ~25 lakh MFI borrowers which corresponds to ~4% of active borrower base.
This has come on the back of recent relief package for MFI borrowers that was announced last week by the state government of Assam providing relief to key MFI lenders.
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